Whitten v. American Mutual Liability Insurance

468 F. Supp. 470, 1977 U.S. Dist. LEXIS 12237
CourtDistrict Court, D. South Carolina
DecidedDecember 22, 1977
DocketCiv. A. 77-703
StatusPublished
Cited by18 cases

This text of 468 F. Supp. 470 (Whitten v. American Mutual Liability Insurance) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Whitten v. American Mutual Liability Insurance, 468 F. Supp. 470, 1977 U.S. Dist. LEXIS 12237 (D.S.C. 1977).

Opinion

ORDER

CHAPMAN, District Judge.

This matter is presently before the Court on the motion of defendant, American Mutual Liability Insurance Company (hereinafter “American Mutual”), to dismiss plaintiff’s claim, pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure, on the ground that the complaint fails to state a claim upon which relief can be granted. In the alternative, defendant moves to strike certain allegations of plaintiff’s complaint pursuant to FRCP 12(f).

Plaintiff sustained a compensable back injury under the South Carolina Workmen’s Compensation Act on December 10, 1973, while employed by Galaxy Boat Manufacturing Co., Inc. Thereafter, plaintiff and American Mutual, as the workmen’s compensation carrier for Galaxy, entered into an Agreement as to Compensation whereby defendant agreed to pay plaintiff the sum of sixty-three ($63.00) dollars per week as compensation for his injury from December 25, 1973, until terminated in accordance with the provisions of the South Carolina Workmen’s Compensation Law, Section 72-1, et seq., of the Code of Laws of South Carolina 1962 (Section 42-1-10, et seq., of the Code of Laws of South Carolina 1976). This agreement was approved by the South Carolina Industrial Commission by its Notice of Award No. 8508 issued March 27, 1974.

American Mutual paid the temporary total disability payments to plaintiff from December 25,1973, to September 8,1975, at which time the compensation payments were stopped without an evidentiary hearing and approval of the Industrial Commission. Thereafter, a hearing was held on October 9, 1975, before Commissioner Sarah Leverette of the Industrial Commission, pursuant to an application by American Mutual to stop payment of compensation. *472 In her Opinion and Award filed January 21, 1976, Commissioner Leverette ordered the following:

IT IS, THEREFORE, ORDERED that the defendants, Galaxy Boat Manufacturing Company, Inc., as the employer and American Mutual Liability Insurance Company as the carrier, shall pay to the claimant, George C. Whitten, Sr., compensation at the maximum compensable rate of Sixty-three and No/100 ($63.00) Dollars per week from and including the date his disability began on December 17, 1973, to December 25, 1973, and from the date of the last payment made on September 8, 1975, until maximum healing was reached on October 3, 1975.
IT IS FURTHER ORDERED that the defendants shall pay to the claimant, George C. Whitten, Sr., compensation at the maximum compensable rate of Sixty-three and No/100 ($63.00) Dollars per week for a period of one hundred, twenty (120) weeks representing a forty percent (40%) permanent partial loss of use of his back.

Appeal was made to the Full Commission where plaintiff and defendants challenged the findings with respect to the percentage of disability, and employer-carrier asserted a maximum healing date of March 15, 1975, rather than October 3, 1975, as found by Commissioner Leverette. On appeal, the Full Commission, by order filed September 10, 1976, found that maximum healing had not been achieved and ordered reinstatement of temporary total benefits. The Full Commission’s order provides in part:

IT IS ORDERED that the defendants shall resume within fifteen (15) days of this Order weekly compensation to the claimant in the amount of Sixty-Three ($63.00) Dollars for total disability from October 3, 1975, to September 10, 1976, and such weekly compensation shall continue until further order of the Industrial Commission.
IT IS FURTHER ORDERED that the defendants shall pay to the claimant weekly compensation of total disability in the amount of Sixty-Three ($63.00) Dollars for the period from December 10, 1973, to December 17, 1973.

On September 24,1976, defendant’s attorneys mailed three checks for payment pursuant to the Order of the Full Commission. These checks were received by plaintiff’s attorney on September 27, 1976. A final check for the amount in arrears as determined by the Full Commission was received by plaintiff’s attorney on October 12, 1976, and, as plaintiff’s attorney concedes in his memorandum in opposition to defendant’s present motion, “[t]his last payment paid all payments in arrears as ordered by the Industrial Commission.”

Subsequently, on April 11, 1977, plaintiff filed a complaint in the Court of Common Pleas for Richland County averring, inter alia, and in essence, that from September 8, 1975, to September 27, 1976, defendant refused to make any compensation payments to plaintiff although plaintiff made numerous demands for the reinstitution of said payments; that plaintiff had no other source of income; that defendant willfully, knowingly, maliciously, recklessly, and negligently failed to make the compensation payments to which plaintiff had a right and for which defendant had an obligation to pay; that plaintiff was thus rendered incapable of securing the necessities of life and was thus caused to become nervous and upset and to suffer mental anguish and emotional distress, all to his damage in the amount of one million ($1,000,000.00) dollars. On April 19,1977, defendant removed the case to this Court, and, on May 16,1977, defendant filed its motion to dismiss.

It is well-settled that this Court, in considering a motion to dismiss for failure to state a claim upon which relief can be granted, must assume the truth of all material allegations of the complaint and must assume that said allegations will be sustained by competent proof at trial. Moreover, if any inference can be reasonably drawn to sustain plaintiff’s cause of action, this Court cannot dismiss plaintiff’s claim.

Even with these precepts in mind, this Court is constrained to grant defend *473 ant’s motion to dismiss. As an initial proposition, it is this Court’s belief that plaintiff’s action should be construed as a suit for breach of contract in light of the fact that the non-payment of compensation monies by defendant was in violation of the Agreement as to Compensation executed by the parties on March 7, 1974. Consequently, under this construction, plaintiff’s claim must be dismissed in light of the fact that the law of this state makes no provision for the recovery of damages for emotional distress or mental anguish resulting from breach of contract, no matter what the intent of the breaching party was in failing to fulfill its obligations.

Secondly, the provisions of the aforementioned agreement state that the payments shall be paid weekly “until terminated in accordance with the provisions of the Workmen’s Compensation Law of the State of S. C.” As noted hereinabove, this Agreement as to Compensation was approved by the South Carolina Industrial Commission by its Notice of Award No. 8508 issued March 27, 1974. Moreover, Section 72-352 of the 1962 Code (Section 42-17-20 of the 1976 Code) reads as follows:

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Bluebook (online)
468 F. Supp. 470, 1977 U.S. Dist. LEXIS 12237, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whitten-v-american-mutual-liability-insurance-scd-1977.